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A Bayesian decision theoretic model of sequential experimentation with delayed response

Author

Listed:
  • Stephen Chick
  • Martin Forster
  • Paolo Pertile
Abstract
We solve a Bayesian decision-theoretic model of a sequential experiment in which the real-valued primary end point is observed with delay. The solution yields a unified policy defining the optimal 'do notexperiment'/'fixed sample size experiment'/'sequential experiment' regions as a function of the prior mean. The model can value the expected benefits accruing to study units, the fixed costs of switching from control to treatment, and allows the number of study units to benefit from a stopping decision to fall as the number of study units recruited to the experiment rises. We apply the model to the field of medical statistics, using data from a published trial investigating the clinical- and cost-effectiveness of drug-eluting stents versus bare metal stents. We demonstrate the model’s superiority over alternative trial designs when judged according to the maximisation of the net benefits of the trial, minus sampling costs, and we investigate how the size of the delay determines the optimal choice of trial design. The optimal policy also performs well when judged according to the probability of making the correct selection of health technology.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Stephen Chick & Martin Forster & Paolo Pertile, 2017. "A Bayesian decision theoretic model of sequential experimentation with delayed response," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 79(5), pages 1439-1462, November.
    • Handle: RePEc:bla:jorssb:v:79:y:2017:i:5:p:1439-1462
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    6. Alessandro Arlotto & Stephen E. Chick & Noah Gans, 2014. "Optimal Hiring and Retention Policies for Heterogeneous Workers Who Learn," Management Science, INFORMS, vol. 60(1), pages 110-129, January.
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    Cited by:

    1. Amir Ali Nasrollahzadeh & Amin Khademi, 2022. "Dynamic Programming for Response-Adaptive Dose-Finding Clinical Trials," INFORMS Journal on Computing, INFORMS, vol. 34(2), pages 1176-1190, March.
    2. Nikhil Bhat & Vivek F. Farias & Ciamac C. Moallemi & Deeksha Sinha, 2020. "Near-Optimal A-B Testing," Management Science, INFORMS, vol. 66(10), pages 4477-4495, October.
    3. Arielle Anderer & Hamsa Bastani & John Silberholz, 2022. "Adaptive Clinical Trial Designs with Surrogates: When Should We Bother?," Management Science, INFORMS, vol. 68(3), pages 1982-2002, March.
    4. Andres Alban & Stephen E. Chick & Martin Forster, 2023. "Value-Based Clinical Trials: Selecting Recruitment Rates and Trial Lengths in Different Regulatory Contexts," Management Science, INFORMS, vol. 69(6), pages 3516-3535, June.
    5. Andres Alban & Stephen E. Chick & Martin Forster, 2020. "Value-based clinical trials: selecting trial lengths and recruitment rates in different regulatory contexts," Discussion Papers 20/01, Department of Economics, University of York.
    6. Thijssen, Jacco J.J. & Bregantini, Daniele, 2017. "Costly sequential experimentation and project valuation with an application to health technology assessment," Journal of Economic Dynamics and Control, Elsevier, vol. 77(C), pages 202-229.
    7. Williamson, S. Faye & Jacko, Peter & Jaki, Thomas, 2022. "Generalisations of a Bayesian decision-theoretic randomisation procedure and the impact of delayed responses," Computational Statistics & Data Analysis, Elsevier, vol. 174(C).
    8. Panos Kouvelis & Joseph Milner & Zhili Tian, 2017. "Clinical Trials for New Drug Development: Optimal Investment and Application," Manufacturing & Service Operations Management, INFORMS, vol. 19(3), pages 437-452, July.
    9. Vishal Ahuja & John R. Birge, 2020. "An Approximation Approach for Response-Adaptive Clinical Trial Design," INFORMS Journal on Computing, INFORMS, vol. 32(4), pages 877-894, October.
    10. Stephen E. Chick & Noah Gans & Özge Yapar, 2022. "Bayesian Sequential Learning for Clinical Trials of Multiple Correlated Medical Interventions," Management Science, INFORMS, vol. 68(7), pages 4919-4938, July.

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    More about this item

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • I10 - Health, Education, and Welfare - - Health - - - General

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